Twenty percent is a useful target because it eliminates PMI and unlocks better rates.
But the typical first-time buyer puts down 6%–8%, and conventional loans go as low as
3%. FHA loans hit 3.5%. VA and USDA loans can hit zero.
Putting more down lowers your payment two ways: a smaller loan, and no PMI. The tradeoff
is liquidity — money tied up in the house is hard to get back. The comparison cards
above show the monthly cost at each level so you can decide what makes sense for your
cash position.